BAIC, Daimler AG and Volkswagen have all announced major expansion plans in China.
Both Volkswagen and Daimler AG, in its joint venture with Beijing Automobile Industry Holding co., have announced large scale investment plans to capitalise on the growing Chinese automotive industry.
Volkswagen says it will invest 123 billion yuan ($19bn) ovr the next five years in a push to become the world's biggest automaker. The investment will cover a batch of new vehicle models as well as two new assembly plants, making a total of 11 VW plants across China.
In comments made at the recent Frankfurt auto show, VW Chairman Martin Winterkorn also said the company may have to build additional plants to meet the massive demand. The company has already seen an increase of 15% on year-on-year sales in China and aims to sell more than 2.4 million vehicles in the country by the end of 2011.
Meanwhile, Daimler AG and BAIC are also seeking 12.8 billion yuan ($2 billion) in loans from a group of banks to pay for new production lines and an engine factory. BAIC Chairman Xu Heyi confirmed the news in an interview at the World Economic Forum meetings in Dalian, also stating that BAIC is in talks with Hyundai Motor Co. to create a China-only brand of electric cars.
Daimler AG and Nissan Motor Co. are preparing to introduce their first electric vehicle on to the Chinese market by the end of 2011.